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grandymaker [24]
3 years ago
13

Crane Company is preparing a cash summary budget using the data below. They have already prepared their cash receipts and cash p

ayments budget so that data is provided: October November Beginning Cash Balance $16000 Expected Cash Receipts $63000 $95000 Expected Cash Payments $45000 $76000 Management always wants to maintain a $40,438 minimum cash balance at the end of every month. If there is an expected cash shortfall in the budget they will be proactive and borrow money at the first day of the month. That way they will not risk having too low of a balance during the month. They can borrow any amount of money needed. They may not pay loans back in installments. They have to pay them back all at once. The interest rate is 12%. Assume if they pay back money, they pay it back on the last day of the month. What is the ending cash balance for November after all loan repayments of principle and interest? Round your answer to the nearest whole dollar.
Business
1 answer:
atroni [7]3 years ago
6 0

Answer:

Ending cash balance for November = $52,869

Explanation:

Crane Company

Cash Budget

October

November

beginning cash balance

$16,000

$40,539

expected cash receipts

$63,000

$95,000

Total available cash

$79,000

$135,539

expected cash payments

$45,000

$76,000

excess of available cash over payments

$34,000

$59,539

financing:

Borrowings

$6,539

$0

Repayments

$0

($6,539)

Interest

$0

($131.00)

Ending cash balance

$40,539

$52,869

The ending cash balance shortfall in October $40,539 - $34,000 = $6,539

Hence, the amount to be borrowed = $6,539

In November, the company has enough funds to meet its ending cash balance as well as pay-off the borrowed amount with interest.

Interest for 2 month = 6,539 x 12% x 2/12 = $130.78 or $131 (rounded off)

Note: cash is borrowed in the first day of the month, assuming the company borrows cash on October 1, and repays on November 30, interest is payable for two months.

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The day sheet is a(n):
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2 years ago
13.. Francisco leased equipment from Julio on December 31, 2021. The lease is a 10-year lease with annual payments of $150,000 d
tatuchka [14]

Answer:

$800,239.40

Explanation:

Calculation for the balance in Francisco lease liability at December 31, 2022

First step is to find the Liability for the year end 31st December 2021

Using this formula

Liability as on 31st December 2021=Initial Value of the Liability - Annual Payment

Let plug in the formula

31st December 2021 Liability =$1,013,854-$150,000

Liability as of 31st December 2021=$863,854

Second step is to find Interest for the Year 2022

Interest =$863,854×10%

Interest =$86,385.40

Third step is to less the interest amount from the Annual payment

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Last step is to find the balance in the lease liability at December 31, 2022

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2 years ago
Required-: JOURNAL ENTRY (ACCOUNT)
damaskus [11]

- Hey there , ronisha!

Answer:

\large{ \tt{SEE \: THE \: ATTACHED \: PICTURE}}

\large{ \tt{E \: X \: P \: L \: A \: N \: A \: T \: I \: O \: N}} :

  • Full settlement generally means DISCOUNT ALLOWED.

  • Firstly , Read out the question and try to understand. It says we purchased some stuffs of Rs 30000 from the sansee stores and we payed Rs 28000 in full settlement which implies that we received the discount of Rs 30000-28000 i.e Rs 2000.

  • You must have known the rules for debit and credit. As we know In case of personal account , Debit : The receiver , We have sansee stores as the receiver so we placed it in debit side.

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  • Now , In case of nominal account , Credit : the incomes or gains . The question says we received the discount so obviously it's not expenses. So, We placed discount received in credit side. You must have studied that Every debit should have equal credit. And we're done!

- Hope this helps! Please let me know if you have any questions regarding my answer and also don't hesitate to reach out to me if you need any other help! :)

7 0
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